In this episode of Pricing College – we discuss the concept of anchoring in pricing – and how you can use it to your business advantage.

TIME-STAMPED SHOW NOTES:

[00:45] Anchoring sits in area of behavioural economics
[01:25] How sales anchor you to a previous higher price
[01:55] Anchoring can help people understand the value of a product.
[02:00] Aidan mentions books such as Influence or Priceless – as having some good examples.
[02:55] Cost plus pricing may anchor customers and sales teams to cost – rather than the actual value of the product or service.
[03:40] Aidan gives a tip on selling a used car using anchoring.
[04:05] Auction results will depend on the economy – where people anchor themselves best on their mood.
[04:45] How you frame the question can often be as important as the question itself.
[05:20] Joanna explains how exam results can depend on how the questions are asked.

LINKS MENTIONED IN TODAY’S EPISODE:

What is anchoring?

Influence: The Psychology of Persuasion

Priceless

Pricing and psychology

Daniel Kahneman